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Oscar Health Lifts Estimated IPO Per-Share Price Range

Oscar Health lifted its estimated IPO price to a range of $36 to $38 a share from its previous estimate of $32 to $34.
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Oscar Health disclosed in a regulatory filing on Tuesday that it expects the pricing of its initial public offering to increase. 

The New York digital health-insurance company now expects to sell 30.35 million Class A common shares at $36 and $38 apiece. That's up from its previous estimate of $32 to $34 a share. 

The new offering is expected to raise $1.18 billion, up from its previous expectation of $1.05 billion. 

The projected number of shares outstanding in the initial public offering also increased, to 197.08 million from 197.04 million. This increased the expected market value of the company to $7.49 billion from $6.7 billion. 

In addition, certain Oscar Health holders are selling 649,080 shares. The company gets no proceeds from those sales.

And the underwriters have an option to sell 4.65 million more shares. 

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Oscar Health had 529,000 members as of January 2021. It generated direct policy premiums of $2.3 billion in 2020 across 18 states.

The company reported annual revenue of $1.67 billion for 2020 and $1.04 billion for 2019. It posted losses of $407 million and $261 million for those two years, respectively. 

The company said that U.S. health-care spending topped $4 trillion in 2020. And it said the Centers for Medicare and Medicaid Services expects that number to rise to more than $6 trillion by 2028.

The company currently sells health plans in three markets -- individual, small group and Medicare Advantage -- which serve a total of more than 50 million Americans and represents an opportunity of $450 billion in direct policy premiums. 

Oscar Health, which was founded in 2012, said last month that it planned to list on the New York Stock Exchange under the ticker symbol OSCR. 

The company has raised about $1.6 billion in private funding from companies including Google parent Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report, Khosla Ventures, General Catalyst and others.